Financial Crime World

Bulgaria’s Financial Crime Detection Methods Under Scrutiny: Experts Call for Institutional Capacity Boost

A Recent Round Table Discussion Highlights Concerns and Recommendations

A recent Round Table discussion organized by the Center for the Study of Democracy brought together experts from various law enforcement agencies and organizations to discuss Bulgaria’s efforts in combating money laundering and other financial crimes. The event highlighted both the country’s progress in developing its legal framework and the need for improved practical application and institutional capacity.

According to the latest report from MONEYVAL at the Council of Europe, Bulgaria’s anti-money laundering (AML) legislation is largely in line with European and international standards. However, the effectiveness of these measures has been hindered by a lack of tangible results, despite an increase in money laundering signals and pre-trial proceedings.

EFFECTIVENESS: hampered by institutional capacity issues

The number of persons standing trial on money laundering charges has increased, but the rate of effective sentences remains alarmingly low. In 2015, for example:

  • Only four individuals received enforced sentences for money laundering
  • 444 individuals received enforced sentences for drug trafficking
  • 88 individuals received enforced sentences for tax-related crimes

INSTITUTIONAL CAPACITY: a critical factor in combating financial crime

Experts emphasized the importance of institutional capacity, including adequate funding and qualified human resources, in increasing the effectiveness of financial crime detection methods. They also stressed the need for:

  • Intra-institutional cooperation at all levels
  • International collaboration with foreign organizations and intelligence units

EFFECTIVE ORGANIZATION AND STRUCTURING: crucial for success

The Round Table participants agreed that establishing an effective organization and structuring of national bodies is essential to avoid duplication of functions and destructive competition between agencies. They also emphasized the importance of:

  • Starting procedures leading to confiscation of illegally obtained assets as early as possible, parallel to criminal proceedings
  • Broader application and understanding of the legal framework

COMPLEXITY OF COMBATING FINANCIAL CRIME: requires a systematic approach

The discussion highlighted the complexity of combating financial crime, requiring a systematic approach to:

  • Collection and analysis of financial information for organized crime groups
  • Broader application and understanding of the legal framework